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Tuesday, April 2, 2013

New auto-trade platform for Forex traders provided by myfxbook.com

Today, myfxbook announced the release of a new auto trade service where Forex traders can follow other traders' strategies and mimic their trades. According to the article the service looks very promising and seems to really deal with most problems that other similar services have had over the years.



If you remember, a while ago I wrote an article about why I thought ZuluTrade is a bad idea. If you don't know what ZuluTrade is, it is a platform that allows Forex traders to mirror other traders' orders so they can mimic their performances.

In my article I mentioned a few problems, the main of which was the way signal providers are compensated. Essentially, the more volume is traded after their signals, the more commissions they make. And that's just crazy, it leads to trading just for the sake of doing it. A few days later ZuluTrade changed that, and now in order to make money signal providers had to be profitable for the month, and this caused a whole new set of problems. For example letting losing trades open for too long (so that you end up with a positive month as only closed trades count). Or not letting winners run if for example the provider is close to the end of the month and can suddenly close a couple winning trades to guarantee a positive month that had been bad until then. Needles to say, this schema is also crazy, as historically profitable trading systems will always have draw-downs, it is a necessity, and draw-downs of a month or more are totally normal. But the compensation schema was now based on less than realistic chances of any strategy being profitable month after month.

By making it a free service MyFxbook's auto trade service eliminates all these problems. They will also offer deeper analytical tools, real account providers (signal providers can't issue signals out of demo accounts), and the auto trade service allows you to also demo trade for unlimited time. So, the service looks really promising. Now, the only question I have is how will signal providers get compensated? if subscribers are using the service for free? Well, that is not explained in the article. But, even so, this is great news. Another nice tool for Forex traders and another step in making the trading business a better and more transparent industry.

Folks, we are living the good old days. Seriously, these are the good old days! The trading arena has changed so much in the last three years. With better tools, more efficient markets, greater volume an liquidity almost every where, technology making communication easier, and a whole new set of legitimate traders, transparent people and services that don't hide their losses and show the world how it is done. I mean, three years ago, it was all garbage and bla bla bla. There's a lot f garbage today as well, but we are in a new age of investing/trading where transparency will soon stop being a revolutionary concept.

As for MyFxbook's auto trade service, time will tell. But so far, all they've done has been excellent. So, my hat off to them.

Related articles:
ZuluTrade is a bad idea
LT Trend Sniper - a Forex strategy that works
The Turtles Trading system automated (Expert Advisor for download)


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3 comments:

  1. This is a great news for forex traders and I think I will use this service for a part of my account and maybe one day we could follow your system.

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  2. Good news indeed. We'll see how it works over time. Thanks for your comment bodhj

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  3. the only problem is, they do not provide any kind of information about the two brokers, under what conditions you are going to trade. if they give you a worse spread for every fill you can throw away all statistics for the system.

    they have 2 brokers to chose from and are not able to provide any kind of information on that other then this nonsense "> There are brokers who already include this rebate in the spread (hence free service)" (this is from support, not from their FAQ, after asking about the fills at both brokers)

    ReplyDelete